HOWARD-SHETH MODEL OF CONSUMER BEHAVIOUR

INTRODUCTION

• John Howard and Jagdish Sheth gave this model in 1969., which is more comprehensive as compared to the Nicosia model.
• The authors used the term ‘buyers’ in their model to refer to the industrial purchases as well as the ultimate consumers.

The model attempts to depict rational brand choice behaviour by buyers under the conditions of incomplete information and limited abilities.

���THREE LEVELS OF DECISION MAKING

���������Extensive problem solving

At this level, the consumer does not have any basic information or knowledge about the brand or we can say that the knowledge or belief about a brand is very limited or non-existent. Before making any final choice, he seeks information about no. of alternatives.

���������Limited problem solving

This situation exits for the consumers who have little knowledge about the market or partial knowledge about what they want to purchase. In order to arrive at brand preference, some comparative brand information is sought.

����������Habitual/ Routinized response behaviour

At this level, the consumer knows very well about the different brands and can differentiate between different characteristics of each product and he already decides to purchase a particular product. The choice is made by habit and least efforts.

ASSUMPTIONS

• Consumer behaviour is a rational exercise in purchase problem solving.
• Consumer behaviour is a systematic and orderly approach caused by inputs i.e. Stimuli and the results i.e. Output.
• Satisfaction leads to brand loyalty.
• Dissatisfaction leads to switching to other brands.

​

Howard-Sheth model is based on the logic that there are inputs in the form of stimuli and output in the form of action.

�STRUCTURE OF HOWARD-SHETH MODEL

The basic structure of this model consists of four major set of constructs:

• Inputs
• Perceptual and learning constructs
• Outputs
• Exogenous variables

​

​

1. Inputs:

These input variables consist of three distinct types of stimuli (information sources) in the consumer’s environment.

​

SIGNIFICATIVE

SYMBOLIC

SOCIAL

​

• Significant Stimuli: The significant stimuli are the physical traits of the product and the brand. It includes the product’s price, quality, availability, distinctive characteristics and service.
• Symbolic Stimuli: The marketing strategies like advertisement and publicity creates a psychological impact on the buyer’s perception of a product’s rhetorical and visible features.
• Social Stimuli: The social stimuli comprises of the various environmental factors which are considered as a source of information for the buyers. It includes family, social class and reference groups.

​

2. Hypothetical constructs:

It includes all those psychological variables which play a vital role in the buyer’s decision making process. It is of two types:

1. Perceptual constructs
2. Learning constructs

​

Perceptual Constructs:

These components define the consumer’s procurement and perception of the information provided at the input stage. It is an essential element since it drives the buyer’s brand selection and purchases, which includes:

• Sensitivity to Information: The buyer’s level of understanding or openness towards the information received by him/her.
• Perceptual Bias: On the grounds of individual perception of each brand, the buyer is partial towards a particular brand.
• Search for Information: The buyer also seeks for more information to ensure the right decision-making.

​

Learning constructs:

The learning constructs define the buyer’s knowledge, opinion, attitude and end decision on product or brand s election. Following are the various learning constructs of a buyer:

• Motive: The specific goal or purpose for which the product purchase is carried out.
• Choice Criteria: The set of principles or benchmarks defined for product selection.
• Brand Comprehension: The information about the product or brand pertained by the buyer.

​

• Attitude: The buyer’s perspective and willingness to purchase a product of a particular brand defines his/her attitude.

​

• Confidence: The trust or faith of the buyer in a specific brand and its products builds his/her confidence.

​

• Intention: The buyer’s purchase motive, preference criteria, brand comprehension, consumer attitude and confidence, results in the selection of a particular brand.

​

• Satisfaction: After-purchase, the buyer evaluates his/her level of contentment, to find out whether the product has fulfilled the expectations or not.

3. Output variables:

The output or as we say, the result of the buyer’s decision-making can be seen in the form of his/her response towards the input variables. It consists of five major components which are arranged systematically below:

• Attention: The buyer’s level of concentration and alertness with which he/she understands the information provided, is termed as attention.
• Brand Comprehension: The awareness of the buyer regarding a particular brand and its products is known as brand comprehension.

​

• Attitude: The buyer’s evaluation of a brand in terms of individual likes and dislikes, determines his/her behaviour, interest and awareness towards it.

​

• Intention: The aim or objective of the buyer for purchasing a product can be seen as the buying intention.

​

• Purchase Behaviour: All the above elements result in the actual purchase of a product by the buyer.

​

4. Exogenous variables:

There are certain other external factors which influence the buying behaviour of an individual or a firm by hampering the product purchase of a preferred brand. The exogenous variables are the environmental forces or components of this model. These are as follows:

• Importance of Purchase: If the buyer perceives the product to be less crucial, involving a low cost, then there is a little brand preference.
• Personality Variables: Personal traits like ego, self-esteem, anxiety, dominance, authoritarian, etc. influences a buyer’s decision-making while purchasing a product.
• Social Class: A buyer’s social group, including the family, friends and other reference groups impact the selection or rejection of a particular brand.

​

• Culture: The buyer’s values, beliefs and ideas frame his/her purchase motive and inhibitors.
• Organization: The buyer’s interaction with the social groups define their authority, status and power. The hypothetical constructs of a buyer are affected by such formal or informal communications.
• Time Pressure: The buyer, at times, is under the pressure of taking a timely decision, which makes him/her look for alternatives if the product of the preferred brand is unavailable at the moment.
• Financial Status: The buyer’s inability to purchase a product or affordability restricts him/her from buying it.

​

Limitations of the model:

• Consumer behaviour is normally repetitive in nature.
• Generally, consumers tend to store information in their memory and establish a routine in their buying decision process.
• The brand choice in one’s purchasing decision is affected by:

a. One’s motives

b. Different alternative choice

c. Decision mediators

• The distinction between endogenous and exogenous variables is not sharp.
• There is a wide variations between theoretical definitions and operational specification.

​

THANK

YOU!